Opinion

Wind-energy tax credit extended for one year

Wind turbines turn at sunset just south of Lamar. (Matthew Staver, Bloomberg)

A row of the giant wind machines at the Ponnequin Wind Farm on the Colorado-Wyoming border. (Denver Post file)

Vestas Wind Systems, the wind turbine manufacturer that built four factories in Colorado, as well as Sen. Mark Udall (D-Co), on Wednesday praised the one-year extension of the wind production tax credit, believed to be critical for Colorado's wind-power industry.

"Extending the wind production tax credit is a long-overdue dose of certainty for manufacturers who employ more then 5,000 Coloradans and 60,000 workers across America," said Udall.

"Although this deal is not perfect, I am glad my colleagues have acknowledged what I have spoken about regularly on the Senate floor: wind energy creates jobs and benefits every American," said Udall.

The extension was passed late Tuesday night.

The extension would cover all wind projects that start construction in 2013. Companies that manufacture wind turbines and install them sought that definition to allow for the 18-24 months it takes to develop a new wind farm.

Vestas president and chief executive Ditlev Engel said he commends "the President and Congress for having agreed to extend the PTC, which confirms the bipartisan U.S. commitment to a balanced, clean-energy portfolio."

Vestas noted that the "short-term PTC extension" is critical to ensure projects move forward and orders are placed that "will support U.S. manufacturing and the domestic supply chain."

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"Even though the late timing of the extension will result in a significant reduction in 2013 installations relative to prior years due to the time it takes from when an order is placed to project completion, the U.S. market will nonetheless be stronger as a result of the PTC extension," said Vestas.

Andrew Longeteig, spokesman for North America Vestas, said that in recent months, as doubts about the extension increased, the company "has maintained a flexible workforce and will be able to scale production to meet customer orders with deliveries from our U.S. factories.

Longeteig noted that Vestas currently employs about 1,100 people at its four Colorado manufacturing facilities.

"We can't speculate on future employment levels at our U.S. factories," said Longeteig.

The association said thousands of American workers in wind energy "are celebrating over the continuation of policies expected to save up to 37,000 jobs and create far more overtime, and to revive business at nearly 500 manufacturing facilities across the country," said the organization.

Denise Bode, chief executive of AWEA, said that "on behalf of all the people working in wind energy manufacturing facilities, their families and all the communities that benefit, we thank President Obama and all the members of the House and Senate who had the foresight to extend this successful policy, so wind projects can continue to be developed in 2013 and 2014."

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